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Solution manual for financial accounting 7th edition by libby

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Balance Sheet For the Period ending December 31, 2009 in millions of dollars Assets Trade accounts, notes, and other receivables 2,262 Liabilities Accounts payable and other current liab

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Solutions Chapter 1 – Set B Exercises – Libby 7e

E1-1B.

Sunoco Inc

Balance Sheet For the Period ending December 31, 2009

(in millions of dollars)

Assets

Trade accounts, notes, and other receivables 2,262

Liabilities

Accounts payable and other current liabilities $ 3,322

Stockholders’ Equity

Total liabilities and stockholders’ equity $11,895

E1-2B.

UNIVERSITY MARKET Income Statement For the Month of March 2011

Revenues:

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Net Income (or Loss) = Revenues - Expenses

Assets = Liabilities + Stockholders’ Equity

A Net Income = $89,700 - $73,940 = $15,760;

Stockholders’ Equity = $134,200 - $59,000 = $75,200

B Total Revenues = $70,240 + $18,740 = $88,980;

Total Liabilities = $100,880 - $90,010 = $10,870

C Net Loss = $66,260 - $86,430 = ($20,170);

Stockholders’ Equity = $99,850 - $60,850 = $39,000

D Total Expenses = $68,680 - $41,770 = $26,910;

Total Assets = $27,890 + $88,680 = $116,570

E Net Income = $88,840 - $75,720 = $13,120;

Total Assets = $35,520 + $77,580 = $113,100

E1–4B.

Net Income (or Loss) = Revenues - Expenses

Assets = Liabilities + Stockholders’ Equity

A Net Income = $230,820 - $176,700 = $54,120;

Stockholders’ Equity = $295,300 - $95,000 = $200,300

B Total Revenues = $165,780 + $32,920 = $198,700;

Total Liabilities = $580,000 - $358,400 = $221,600

C Net Loss = $70,990 - $89,890 = ($18,900);

Stockholders’ Equity = $268,200 - $195,760 = $72,440

D Total Expenses = $43,590 - $11,840 = $31,750;

Total Assets = $198,675 + $99,525 = $298,200

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XTREME MANUFACTURING CORPORATION

Statement of Cash Flows For the Year Ended December 31, 2011

Cash flow from operating activities

Cash paid for operating expenses (195,000)

Net cash flow from operating activities $65,000

Cash flow from investing activities

Net cash flow from investing activities (4,000)

Cash flow from financing activities

Net cash flow from financing activities (58,000)

E1–6B.

BARBARA’S DESIGN CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2012

* Beginning retained earnings + Net income – Dividends = Ending retained earnings For 2011: $0 + 39,000 – 15,200 = $23,800;

Ending retained earnings for 2011 becomes beginning retained earnings for 2012

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FABULOUS STYLES Income Statement For the Month of March 2011

Revenues:

Expenses:

Salaries, rent, supplies, and other

expenses (paid in cash) 22,000

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Net Income (or Loss) = Revenues - Expenses

Assets = Liabilities + Stockholders’ Equity

A Net Income = $91,700 - $75,940 = $15,760;

Stockholders’ Equity = $136,200 - $61,000 = $75,200

B Total Revenues = $85,240 + $33,740 = $118,980;

Total Liabilities = $115,880 - $105,010 = $10,870

C Net Loss = $33,260 - $86,430 = ($53,170);

Stockholders’ Equity = $98,850 - $62,850 = $36,000

D Total Expenses = $81,680 - $41,770 = $39,910;

Total Assets = $27,800 + $88,680 = $116,480

E Net Income = $81,840 - $75,720 = $6,120;

Total Assets = $35,500 + $77,500 = $113,000

E1–9B.

Net Income (or Loss) = Revenues - Expenses

Assets = Liabilities + Stockholders’ Equity

A Net Income = $240,820 - $176,700 = $64,120;

Stockholders’ Equity = $295,000 - $95,000 = $200,000

B Total Revenues = $165,700 + $32,020 = $197,720;

Total Liabilities = $585,000 - $365,400 = $219,600

C Net Loss = $67,990 - $89,890 = ($21,900);

Stockholders’ Equity = $288,200 - $195,760 = $92,440

D Total Expenses = $43,590 - $15,840 = $27,750;

Total Assets = $218,675 + $99,525 = $318,200

E Net Income = $225,130 - $210,600= $14,530;

Total Assets = $195,800 + $316,200 = $512,000

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XTREME MANUFACTURING CORPORATION

Statement of Cash Flows For the Year Ended December 31, 2011

Cash flow from operating activities

Cash paid for operating expenses (198,000)

Net cash flow from operating activities $77,000

Cash flow from investing activities

Net cash flow from investing activities (15,750)

Cash flow from financing activities

Net cash flow from financing activities (62,150)

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